IndusInd Bank Q2 Results FY2023, PAT at Rs. 1,805 crores

On 19th October 2022, IndusInd Bank announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- Net Profit stood at Rs.1,805 crores as compared to Rs. 1,147 crores, up by 57% YoY.

- Pre Provision Operating Profit (PPOP) at Rs. 3,544 crores and registered a growth of 10%. PPOP / Average Advance ratio stood steady at 5.71%. 

- Net Interest Income for Q2FY23, at Rs. 4,302 crores, grew by 18% YoY and 4% QoQ. Net Interest Margin for Q2FY2023 stood at 4.24% against 4.07% for Q2FY22. 

- Other income stood at Rs. 2,011 crores for Q2FY22 as against Rs. 1,841 crores for the corresponding quarter of the previous year, grew by 9% YoY. Core Fee grew by 24%YoY to Rs. 1,872 crores as against Rs. 1,506 crores for the corresponding quarter of the previous year.

- Balance sheet footage as on September 30, 2022 was Rs. 4,26,575 crores as against Rs. 3,80,495 crores as on September 30, 2021, showing growth of 12%.

Business Highlights:

- Deposits as on September 30, 2022 were Rs. 3,15,532 crores as against Rs. 2,75,288 crores, an increase of 15% over September 30, 2021. 

- CASA deposits increased to Rs. 1,33,525 crores with Current Account deposits at Rs. 44, 157 crores and Savings Account deposits at Rs. 89,368 crores. CASA deposits comprised 42% of total deposits.

- Advances as of September 30, 2022 were Rs.2,60,129 crores with an increase of 18% over September 30, 2021.

- The Gross NPA was at 2.11 % of gross advances. Net Non-Performing Assets were 0.61% of net advances in Q2FY23 compared to 0.67% in Q1FY23. 

- The Provision Coverage Ratio was consistent at 72%. Provisions and contingencies were at Rs.1,141 crores, reduced by 33% YoY. 

- Total loan-related provisions as on September 30, 2022 were at Rs. 7, 791crores (3% of loan book)

- The Bank's Total Capital Adequacy Ratio as per Basel III guidelines stands at 18.01%

-  The Bank's distribution network included 2,320 branches/ Banking outlets and 2807 onsite and offsite ATMs, as against 2,015 Branches/ Banking outlets and 2,886 onsite and offsite ATMs as of September 30, 2021. The client base stood at 33 million as on September 30, 2022. 

Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, Induslnd Bank said: "Indian economy continues to be amongst the best performing economies even in the wake of external disturbances and tightening monetary conditions. During the quarter, the Bank saw consistent improvement across our key business units both in terms of growth and asset quality. Our deposits grew by 15% whereas loans grew by 18% YoY. The loan growth was broad-based across consumer and corporate portfolios. Our operating profit margins continue to be amongst the best in the industry supported by NIM expanding to 4.24% from 4.21% QoQ. Our GNPAs and NNPAs reduced QoQ from 2.35% to 2.11% and 0.67% to 0.61% respectively driven by a meaningful reduction in slippages. Consequently, our Profit After Tax was at Rs. 1,805 crores growing 11% QoQ and 57% YoY. Our Capital Adequacy Ratio at 18.01 % is well above the regulatory requirements. The Bank continues to invest in its physical and digital distribution to maintain the growth trajectory as per our strategic ambitions."

The IndusInd bank share price dropped by 4.65%